Bank of Canada 2021 Financial Statements

Summary#

• This is the audited financial report of the Bank of Canada for the year ended December 31, 2021, published in the Canada Gazette on May 7, 2022.
• It shows the Bank’s income, expenses, assets and liabilities for 2021 and records an auditor’s unmodified opinion from KPMG LLP and Ernst & Young LLP.

What it does#

• Presents the Bank’s main financial statements (balance sheet, income statement, cash flows) and detailed notes.
• Reports total assets of $499,365 million (about $499 billion) and total liabilities and equity of the same amount.
• Shows net income for 2021 of $2,401 million (about $2.4 billion).
• Shows key balance-sheet items, including:
  • Bank notes in circulation of $115,155 million (about $115 billion).
  • Deposits held at the Bank of $347,034 million (about $347 billion).
  • Securities purchased under resale agreements (repos) of $23,418 million.
• Records remittances between the Bank and the government: the Bank remitted $2,748 million to the Receiver General in 2021 and had a surplus payable of $605 million at year end.
• Describes pension and other employee benefit positions (the Pension Plan’s fair value of plan assets was $2,439 million and the defined‑benefit obligation was $2,348 million).
• Includes the auditors’ report dated February 24, 2022, stating the financial statements “present fairly” the Bank’s position under International Financial Reporting Standards.

Who's affected#

• The general public indirectly, because the Bank issues Canada’s bank notes and manages reserves that support the economy.
• The Government of Canada, which receives the Bank’s surplus payments (the Receiver General).
• Financial-market participants and banks, because the statements show the Bank’s holdings and liquidity operations (repos and related programs).
• Employees of the Bank of Canada (pension and benefit plan funding and disclosures affect them).
• Investors, researchers, and anyone watching central-bank balance‑sheet size and operations.
• If it’s unclear who else might be affected, the statements’ technical details mainly concern institutions that interact directly with the Bank (e.g., members of Payments Canada, counterparties to repos and swaps).

Why it matters#

• These statements show how large and active Canada’s central bank was in 2021 (big balance‑sheet items and market operations). That helps explain the Bank’s role in supporting financial markets and supplying bank notes.
• Net income and remitted surplus affect public finances because profits are passed to the Receiver General.
• The size and composition of the Bank’s assets (government bonds, repos, etc.) reflect monetary and market-support actions that can influence interest rates and market liquidity.
• Pension and benefit disclosures show the Bank’s obligations to employees and the funding health of those plans.
• The independent auditors’ clean opinion gives assurance that the numbers were prepared following international accounting rules.